ISLAMABAD, Jan 11 (Reuters) - The Pakistani Islamist leaderaccused of masterminding the 2008 Mumbai massacre said India wastrying to destabilise Pakistan and predicted violence in thedisputed region of Kashmir could get "ugly".

"We do not want any force to be used or any militaryoperation for this. But the Indians are opting for the otheralternative," Hafez Saeed told Reuters in a telephone interviewon Friday.

Saeed founded Lashkar-e-Taiba (LeT) in the 1990s, themilitant group which India blames for the rampage in Mumbai,where gunmen killed 166 people over three days. He denies anywrongdoing and links to militants.

He denied Indian press reports that he had been incitingaction against the neighbouring country just before the recentoutbreak of the worst violence in Kashmir since thenuclear-armed neighbours agreed a ceasefire nearly a decade ago.

In the third fatal attack in Kashmir this week, a Pakistanisoldier was killed on Thursday by "unprovoked" Indian fire, aPakistan army spokesman said.

He was shot while manning a post in the Battal sector ofKashmir, which is split between the two sides by a heavilyfortified border known as the Line of Control (LoC), thespokesman said.

Saeed accused India of trying to disrupt the peace processwith Pakistan and dragging its feet on the long-standing issueof Kashmir.

"This is their usual practice. Betraying the internationalcommunity and destabilising Pakistan," said Saeed. "And that'swhat they are doing this time."

India and Pakistan have fought three wars since becomingindependent from Britain in 1947, two of them over the Himalayanregion of Kashmir.

Relations had shown signs of improving in the past yearafter souring again in 2008 after the Mumbai bloodshed.

Both governments have expressed anger over the latestKashmir attacks even as senior officials sought to calm fearsthat right-wing groups could seize the opportunity to derailyears of diplomatic rapprochement.

India has repeatedly called on Pakistan to bring Saeed tojustice, an issue that has stood in the way of rebuildingrelations between the nuclear-armed neighbours since the carnagein Mumbai.

India is furious that Pakistan has not detained Saeed sinceit handed over evidence against him to Islamabad. Washington hasoffered a reward of $10 million for information leading toSaeed's capture.